Today’s Announcements & News
Asia-Pacific markets displayed a mix of movements on Thursday following the release of the U.S. Federal Reserve’s July minutes, which indicated that concerns about inflation persist, possibly leading to further interest rate hikes.
The meeting summary stated, “With inflation still well above the Committee’s longer-run goal and the labor market remaining tight, most participants continued to see significant upside risks to inflation, which could require further tightening of monetary policy.”
The current Federal Funds rate stands at 5.25% to 5.5%, the highest it has been in 22 years.
In the Hong Kong market, the Hang Seng index exhibited a close to flat performance. On the mainland, China’s CSI 300 experienced a modest increase of 0.33% to reach 3,831.1.
Meanwhile, Australia’s S&P/ASX 200 dipped 0.68% to conclude at 7,146, marking its lowest point in over a month, driven partly by the country’s unemployment rate inching up to 3.7% in July.
Japan’s Nikkei 225 declined by 0.44% to finish at 31,626, its lowest level since June, while the Topix ended 0.34% lower at 2,253.06. Japan’s trade balance shifted into a deficit in July from a surplus in June.
South Korea’s Kospi recorded a 0.23% decline to close at 2,519.85, marking its fifth consecutive day of losses. However, the Kosdaq defied the broader trend, rising by 0.88% to reach 886.04.
Stocks experienced a third consecutive session of decline on Thursday as investors processed the latest batch of earnings reports and economic data, all while witnessing rising interest rates.
The Dow Jones Industrial Average saw a decrease of 290.91 points, or 0.84%, closing at 34,474.83. This marked the first instance of the 30-stock Dow closing below the 50-day moving average since June 1, which could potentially signal a downward trend.
Simultaneously, the S&P 500 slipped 0.77%, concluding the session at 4,370.36. The Nasdaq Composite witnessed a decline of 1.17%, settling at 13,316.93.
On Thursday, the 10-year U.S. Treasury yield reached its highest level since October 2022. The increase in rates follows the release of the Federal Reserve’s July meeting minutes on Wednesday, which highlighted the central bank’s ongoing concerns about inflation risks.
Despite reporting positive earnings and revenue figures for the fiscal second quarter, Walmart’s stock dipped more than 2%. The company also raised its full-year guidance and emphasized its strong performance in grocery and online sales.
Oil prices rebounded by more than 1% on Thursday, halting a three-session decline, driven in part by a retreat in the dollar’s strength and China’s central bank taking measures to support its property market and broader economy.
Brent crude futures gained 41 cents, or 0.49%, reaching $83.86 a barrel. Meanwhile, U.S. West Texas Intermediate crude increased by 74 cents, or 0.93%, to reach $80.13 a barrel.
On the other hand, gold prices experienced a dip to a five-month low on Thursday. This was attributed to factors including the rise in Treasury yields, a strong dollar, and a more hawkish stance on interest rates from Federal Reserve officials. Spot gold dropped by 0.17% to $1,888.50 per ounce, its lowest level since March 15. Similarly, U.S. gold futures saw a decline of 0.51%, settling at $1,918.40.
The above analysis is only for the views of market researchers and is for reference only and is not regarded as a specific investment suggestion.